Board approves meals tax, cuts tax rate
The Fairfax County Board of Supervisors agreed to reduce the tax rate, impose a meals tax, and fully fund middle school afterschool programs.
Those are the key takeaways from the FY 2026 budget markup approved by the board on May 6.
The advertised budget presented to the board in February proposed increasing the property tax rate by 1.5 cents. The board instead reduced the current rate of $1.125 per $100 of assessed value by a quarter of a cent to $1.1225 per $100 of assessed value.
The board approved a 4 percent food and beverage tax, with the goal of diversifying the county’s revenue sources. It will apply to prepared food sold by restaurants, food trucks, coffee shops, and grocery store deli counters. It will not apply to groceries or vending machines.
The board also raised the transient occupancy tax from 4 percent to 6 percent. A portion of the increase will be used for promoting tourism.
The budget will be formally adopted on May 13 and will take effect on July 1. The meals tax will take effect on Jan. 1, 2026.
Related story: Fairfax County executive proposes a lean budget for FY 2026
The board agreed to fully fund the afterschool program at middle schools for the 2025-26 year after hearing from thousands of residents who opposed a provision in the advertised budget to eliminate that program.
“Staff are exploring long-term cost-reduction strategies, including fee-based options with sliding scales. A memorandum of understanding will outline shared responsibilities going forward,” the county states in a news release.
The county will continue to fund other programs that were on the chopping block, including the Community Emergency Response Team (CERT). Crossing guards at high schools will be funded through FY 2026 while staffing alternatives are explored. In addition, postsecondary education services for adults with developmental disabilities will continue through FY 2026 for currently enrolled families.
The markup package maintains the advertised FY 2026 transfer to Fairfax County Public Schools, providing a $118.6 million increase over the previous year. That is $149.7 million less than the school board’s requested increase of $268.3 million.
The FY 2026 budget includes partial restoration of Fairfax County Park Authority funding for mowing, trail maintenance, and support for the Fairfax County Park Foundation.
The budget fully funds employee compensation plans and collective bargaining agreements for fire and police personnel.
To expand opportunities for affordable housing, the FY 2026 budget dedicates $42.44 million, equal to 1.25 cents on the real estate tax rate, with a goal of reaching the 2-cent equivalent by FY 2027. The board also supports fast-tracking affordable developments and identifying one-time funding sources as needed.
The board warns that temporary state funding for Metro for FY 2025 and 2026 is not expected to continue beyond next year. Without a long-term solution, the county could face increased costs for Metro in FY 2027.
To prepare for FY 2027, the budget directs agencies “to explore efficiencies, evaluate service models, and participate in a new employee feedback portal for cost-saving ideas. Viable suggestions may be rewarded with stipends or additional leave.”
The budget allocates over $12 million to reserves. That would provide flexibility to address potential impacts from the reductions in the federal workforce and broader financial uncertainties due to global instability.
12 responses to “Board approves meals tax, cuts tax rate”
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This all seems pretty reasonable given the challenges to write a budget in a county of this size with the current uncertainty due to the economy and Federal Gov and contractor cuts that have already hit the area and will surely hit the area soon.
They’re gaslighting us and barely even making the easy decisions. Crossing guards at high schools are beyond unnecessary. As far as metro funding, tough nuts! They can balance their own budget and we should not be beholden to their whims. Mason district benefits very little from metro. Too many “fun projects” from affordable housing to zero waste initiatives. There’s many reasons I won’t vote for R’s but dems have got to get realistic
I guess those meals tax referendums, which residents noted no on, meant nothing.
Fairfax has a spending problem…not an income problem. We will reduce going out for food and take out. Just like I don’t pay a nickel for a plastic bag, I’m not going to let Fairfax waste my money (that they collect from the resturant tax) on garbage programs – like DEI, a Sheriff and Commonwealth Attorney that do not enforce the law, and pay Jimenez salary for his no show job. Nothing about this budget is “reasonable” Here peasants, take your quarter cent property tax relief and be happy!
Nice slight of hand on the property tax. Our assessment went up 10 percent, so even with this bogus math, I’m looking at a two grand increase. This is along with getting a zero percent raise at work this year. The BOS is clueless. And just wait for restaurants to close – which many are on the verge of.
Despite your 0% raise at work, you must be living pretty large in your $1.85M house (FY2026 assessment), as that is the only way your assessment rise of 10% translates to having to pay a “two grand increase”. And I’ve been charitable to you by presuming you’re on county-provided trash and leaf pickup; otherwise, your house is now assessed in the $1.95M range.
Thank you to the Board of Supervisors for making the tough calls on behalf of 1.2 million residents of a dynamic, growing urban community.
Dear Tom – Fairfax is not growing. Exits are greater than new folks coming in – and please do not confuse population growth from having babies as growing – babies are takers – not makers – just speaking economics my man- stop kidding yourself if you don’t think Fairfax is on a death spiral downward thanks to a certain one party control.
Seriously – death spiral? C’mon Mark, try to dial back your hyperbole, and suppress your obvious politically-charged negativity bias – maybe somebody outside your echo chamber will respect your opinion some and listen to what you have to say.
Fairfax makes it really hard to be a Democrat. A “reduction” of a quarter of a cent to $1.1225 per $100 of as as assessed value is sky-rocketing. And then a 6% meals tax – because everyone else is doing it.
Do the Supervisors every actually tighten their belts?
Who exactly does Jimenez represent?
A meals tax is the best and mostly only way for the county to gather revenue from visitors. A Quick google indicates that non-residents spend $3.6B a year in Fairfax county. If all of that was spent on food and drink (it’s not, but for the sake of discussion) and was subject to the meals tax, that’s $216M. $216M that you aren’t on the hook for in your property taxes.
Here’s what the budget is spent on:
https://www.fairfaxcounty.gov/budget/sites/budget/files/Assets/Documents/fy2025/adopted/overview/Pie%20Chart%20Where%20it%20Goes.pdf
52% school, 13% cops and firefighters, 11% community health services.
What do you want to cut?
There has never been any creditable evidence to support the notion that a meals tax will have any effect on reducing property taxes. Furthermore, your question about which services to cut is pointless. The fact that the Democrats circumvented the will of local taxpayers by imposing this meals tax reflects how desperate they are to avoid making difficult decisions about cutting spending. For them, the only pertinent question is how to spend the money they have before it runs out. Then they’ll be right back to demand even more tax revenue.
Thanks to the Democrats, this county cannot function without a continuous stream of new tax revenue to meet their supporters’ incessant demands for more and more costly services. So, consider eating out less. You’ll need the money you save on meals taxes to help pay off your escalating property tax bills.
Sparky